2016 INFORMS Annual Meeting Program

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INFORMS Nashville – 2016
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3 - Online Assortment Optimization When Customers Refine
Their Search
Zhichao Feng, The University of Texas at Dallas, Richardson, TX,
75080, United States, , Dorothee Honhon,
Shengqi Ye
When shopping online, a consumer often searches a keyword and checks the
products displayed by the retailer. In many cases, the retailer has numerous
products matching the keyword, with different features and functionalities, but is
only able to show a subset of them due to limited displaying space. The
assortment shown by the retailer influences the consumer’s decision to buy or
not. In addition, when the consumer is not familiar with the product category, the
assortment may trigger interest in a specific product feature, leading the
consumer to refine her search, and focus only on products with this feature.
Taking this into consideration, we study the online retailer’s optimal assortment
decision.
4 - Flexible Break Assignment Problem For Ground Handler
Shift Scheduling
Youngbum Hur, Graduate Research Assisstant, The University of
Texas at Austin, 1 University Station C2200, United States,
, Jonathan F Bard,
Ferdinand Kiermaier, Markus Frey
The purpose of this paper is to investigate the benefits that flexibility offers in
daily shift scheduling. The different forms of flexibility considered include shift
start times, the number of breaks, break lengths, and break placement. Four
related mixed-integer programming models are developed and used to compare
break scheduling in advance and in real-time for various shift and break profiles.
Tests were performed using demand data for ground handlers at a major
European airport.
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205B-MCC
Payment Models in Healthcare
Sponsored: Manufacturing & Service Oper Mgmt, Supply Chain
Sponsored Session
Chair: Hamed Mamani, University of Washington, Seattle, WA,
United States,
Co-Chair: Shima Nassiri, University of Washington, ISOM, Foster
School of Business, Seattle, WA, 98195, United States,
1 - The Impact Of Reimbursement Policy On Patient Welfare,
Readmission Rate And Waiting Time In A Public Healthcare
System: Fee-for-service Vs. Bundled Payment
Yulan Wang, Hong Kong Polytechnic University,
, Christopher S Tang, Pengfei Guo,
Ming Zhao
We examine two commonly used reimbursement schemes: Fee-For-Service (FFS)
and Bundled Payment (BP) from aspects of congestion (waiting times patients
incur) and service quality (measured by readmission rate). We consider a three-
layer public health care system including a funder who decides the
reimbursement payment, a representative health care provider who decides the
service rate (affecting service quality) and patients who decide to join or balk
based on their net utility. We determine equilibrium outcomes and find that, in
general, BP scheme improves patient welfare and service quality but FFS scheme
results in less congestion. Under certain conditions, the two are equally efficient.
2 - Bundled Payment Vs. Fee-for-service: Impact Of Payment
Scheme On Performance
Shima Nassiri, University of Washington, Seattle, WA, United
States, , Elodie Adida, Hamed Mamani
Healthcare reimbursements in the US have been traditionally based upon a fee-
for-service (FFS) scheme, providing incentives for high volume of care. The new
healthcare legislation tests new payment models that remove such incentives,
such as the bundled payment (BP) system. Our interest is in analyzing the effect
of different payment schemes on outcomes such as the presence and extent of
patient selection, the treatment intensity, the provider’s utility and financial risk,
and the total system payoff. We design two payment systems, hybrid payment
and stop-loss mechanisms, that alleviate the shortcomings of FFS and BP and may
induce system optimum decisions in a complementary manner.
3 - Bundled Payment Implementation via Market Segmentation
Ruben Proano, Rochester Institute of Technology,
This talk illustrates the opportunities of applying market segmentation and tiered
pricing to the implementation of bundled payments in replacement of fee-for-
service for the reimbursement of healthcare expenses. Relying on a cluster-based
episode construcion approach, the study shows how market segmentation and
tiered pricing can reduce the risks of over- and under- paying for claims
facilitating the adoption ob bundled payment by providers and payers.
4 - Incentive Design For Coordination In Care Of Chronic Patients
Sasa Zorc, INSEAD, Singapore, Singapore, ,
Stephen E Chick, Sameer Hasija
We consider contracting issues in care of chronic patients. The government
contracts with several healthcare providers in effort to maximise public health
minus the cost. We model the decision of whether to contract with individual
providers or alliances of providers, as well as which contract type to use. We show
that with risk neutral agents, first best can be achieved with both options by using
outcomes adjusted capitation or per-patient contracts. We also examine adverse
effects arising from fragmentation of care: free riding within an alliance and
collusion between individual providers. We show that individual outcomes-
adjusted capitation contracts perform best under these effects.
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205C-MCC
Topics in Sustainable Operations and the Role of
Information
Sponsored: Manufacturing & Service Oper Mgmt,
Sustainable Operations
Sponsored Session
Chair: Leon Valdes, Massachusetts Institute of Technology,
77 Massachusetts Ave, Cambridge, MA, 02139, United States,
1 - To Recycle Or Not: An Analysis Of The Environmental And
Financial Impact Of Recycling
Hailong Cui, University of Southern California, Los Angeles, CA,
United States, , Greys Sosic
We evaluate the impact of recyclability on the emissions through the products’
life cycle and derive conditions for reduction of long-run average emissions. We
investigate the underlying costs imposed on the supply chain and on the society
to understand optimal decisions for decentralized (manufacturer or government-
driven recycling) and centralized cases.
2 - How Do You Pay Your Electricity Bill? Payment Methods And
Energy Conservation
Christian Blanco, University of California-Los Angeles, Los
Angeles, CA, 90095, United States, ,
Magali Delmas
We explore whether different payment methods may make electricity cost more
or less salient. We then look at whether the introduction of smart meters can
complement different payment methods and lead to changes in electricity
consumption. We explore this using data from the largest electric utility company
in the US.
3 - Are Hazardous Substance Rankings Effective? An Empirical
Investigation Of Changing Assessments Of The Relative Hazards
Of Chemicals And Voluntary Emissions Reductions
Wayne Fu, Georgia Institute of Technology, Atlanta, GA, 30308,
United States, Basak Kalkanci,
Ravi Subramanian
Governmental organizations such as the ATSDR provide extensive information on
potential hazards of industrial chemicals to public. We investigate the link
between such information dissemination and voluntary environmental efforts of
firms and the implications of firms’ operational characteristics on the extent and
the nature of the efforts. Finding that increases in assessed hazard level are
associated with greater reductions in emissions, we suggest that the effect of
information dissemination is significant. We also find evidence that operational
leanness may limit the ability of facilities to reduce emissions in response to
increases in assessed levels of hazard.
4 - Investing In Supplier Social Responsibility And Supply
Chain Visibility
Leon Valdes, Massachusetts Institute of Technology,
Tim Kraft, Yanchong Zheng
We study a manufacturer’s decisions when the social responsibility (SR)
performance of her supplier cannot be perfectly observed and where only the
supplier can directly impact SR. However, the manufacturer can: (i) increase her
visibility into the supplier’s performance; and (ii) invest in the supplier’s
capabilities to improve SR. A third party may disclose SR information to
consumers, affecting demand. Our results provide insights into the impact of
supply chain visibility on the supplier’s and the manufacturer’s strategies. We
identify conditions under which the manufacturer is more likely to invest in
visibility and we show that higher visibility does not always translate into greater
SR.
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